Woongjin has partnered with private equity fund operator Eugene PEF to acquire the funeral service company Fried Life, and has invested in a special purpose company (SPC) that will take over Fried Life.
According to the Financial Supervisory Service electronic disclosure on the 25th, Woongjin announced that it will acquire 20,000 shares by participating in the capital increase of its 100% subsidiary W.J. Life Holdings.
Woongjin will acquire a total of 20,000 shares in cash by participating in the shareholder allocation capital increase of W.J. Life Holdings. The acquisition amount is 100 billion won, which corresponds to 52.94% of Woongjin's equity.
This investment is to secure funds for acquiring equity in other companies held by W.J. Life Holdings. As a result, Woongjin's total shares will increase to 20,022 shares, and its equity interest will become 100%.
The entity that W.J. Life Holdings will acquire is Fried Life. Woongjin is seeking funding to acquire Fried Life from private equity fund operator VIG Partners.
The total sale price is expected to be set at around 900 billion won. DB Securities and Woori Bank will each bear half of the 500 billion won in senior funds, with DB Securities also providing nearly 200 billion won in remaining mezzanine funds. Woongjin Group will take on 200 billion won of subordinate financing.
On the 10th, Woongjin issued a 100 billion won contingent convertible bond (CoCo Bond) through DB Securities in the private bond market. CoCo bonds refer to bonds that are converted into shares when certain conditions are met.